Typical funding range
$10,000 – $200,000 — that's the band most auto repair in Texas fall into. Deals smaller than $10K are uncommon (the math rarely works for the funder). Deals over $250K typically require stronger profiles or collateral.
What funders look for
- 6+ months operating; specialty MCA programs accept newer shops
- Monthly revenue floor: $15,000
- Equipment financing usually beats MCA on cost for diagnostic equipment, lifts, alignment racks
- Texas 2026 disclosure law applies to sales-based financing structures
What to bring to the application
The faster you can ship these to a funder, the faster you close. Most underwriting decisions for auto repair in Texas happen in 2–4 hours once docs are complete.
- Last 3–6 months business bank statements
- Voided business check
- Texas business license / sales tax permit
- Driver's license for the majority owner
The math
A typical auto repair deal in Texas lands at a factor rate between 1.25 and 1.42. On a $50,000 advance at 1.32, you'd repay $66,000 over 9–12 months — about $260–$305/day in ACH. Our factor rate calculator lets you plug in your own numbers.
Frequently asked questions
- Should a Texas auto repair shop use MCA or equipment financing?
- For equipment purchases (diagnostic systems, alignment racks, lifts), equipment financing is dramatically cheaper. 10% APR over 5-7 years vs a 1.30 factor over 12 months saves tens of thousands. Use MCA for parts inventory, payroll, working capital — not equipment.
- Are collision repair shops priced differently?
- Often yes. Collision shops have factor-friendly AR (insurance carriers pay reliably). Many do better with invoice factoring at 1-3% per invoice than MCA at 1.30+ factor. We route collision-heavy shops to factoring when AR profile fits.
- Does the Texas SB 1280 law affect auto repair MCA terms?
- Yes. Funders licensed to operate in Texas in 2026 must register and provide standardized disclosures including APR-equivalent. The approval bar didn't change; the paperwork did.